We analyze whether or not the globalization of capital, `disciplines' governments and improves gov- ernance. We demonstrate that globalization a ects governance, by increasing a country's vulnerability to sudden capital ight. This increased threat of capital ight can discipline governments and...

We analyze whether or not the globalization of capital, ‘disciplines’ governments and improves governance. We demonstrate that globalization affects governance, by increasing a country’s vulnerability to sudden capital flight. This increased threat of capital flight can discipline...

We use detailed contract level data on a portfolio of 197 co¤ee washing sta- tions in 18 countries to identify the sources and consequences of credit markets imperfections. Due to moral hazard, default rates increase following unanticipated increases in world co¤ee prices just before (but not...

This paper examines the role of cultural factors in driving the politics, size and nature (tempo- rary versus permanent migration) of migration policy. We show that there exists a broad political failure that results in ine¢ ciently high barriers restricting the import of temporary foreign...

We consider a model of policy choice in which appropriate policies depend on a country’s own circumstances, but the presence of a successful leader generates an informational externality and results in too little ‘policy experimentation’. Corrupt governments are reined in while honest...

This paper develops a theory of policy making, that examines the incentives for experimentation with new policies and the scrappage of adopted policies. We demonstrate that a government which cares about its reputation out of electoral concerns, takes socially ine?cient policy gambles that may...

Governments in many developing countries skew public resources towards urban sectors, despite a majority of citizens residing in rural areas. This paper develops a novel political argument for this urban bias phenomenon in a framework where all voters, rural and urban, have equal voice, but...